A Wankel rotary engine (10) comprising a first combustion chamber (12), a second combustion chamber (14) and an expansion chamber (16). The first, second and expansion chambers (12, 14, 16) include corresponding first, second and expansion rotors (24,26,36) and the expansion chamber (16) is located between the first and second chambers (12, 14). A first transfer duct connects an exhaust port on the first combustion chamber (12) to an intake port on a first side of the expansion chamber (16) and a second transfer duct connects an exhaust port on the second combustion chamber (14) to an intake port on a second opposite side of the expansion chamber (16). Exhaust and any unburnt fuel from the first and second combustion chambers (12, 14) may therefore continue to expand and combust in the expansion chamber (16). Further, the expansion chamber (16) captures and harnesses additional energy normally lost with the exhaust and feeds it as additional torque into the common crankshaft.
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